VRA Investment Update: WAR Tonight. Our Psychotic Fed. Real Fear Leading to Great Buying Opp.

Good Thursday morning all. I’ll be on with our great friend Wayne Allyn Root tonight on the Wayne Root Show at 8:30 PM EST. Listen in on USARadio.com or via Wayne’s site; RootForAmerica.com. 

We’ll be talking about this (bear) market and the soon to be extreme oversold conditions that will lead to the best 12 months of the year for stocks, along with new details about a psychotic Federal Reserve that’s intent on breaking sh*t and getting millions of people fired, and of course politics…with the midterms fast approaching. 

We have a VRA community that listens to, reads and follows WAR closely. And because of that you know that he’s been on the leading edge of the plandemic, the rigged election and now this communist government that’s been installed. No ones been more accurate than Wayne…and he sees things getting worse. Wayne said something to me a couple of weeks ago that stuck with me; “when’s the last time you saw communists willingly leave power?”

Wayne thinks things could get ugly headed into the midterms. Frankly, and as I told him last night, I’d like to be the one interviewing him. With that in mind, Wayne has agreed to join us next week on a VRA Investing VidCast, where Tyler and I will get to do just that, for an extended interview. Look for those details soon. Until then, please join us tonight at 8:30 PM on the “Sir WAR Show”. 

VRA Market Update

If you watched the Fed presser yesterday you saw a preachy J Powell, from his ivory tower, making clear to us peons that it didn’t matter how many millions of Americans lost their jobs, the Fed is intent on raising rates and will continue to do so until the “terminal rate” (final Fed Funds rate) reaches 4.6%, vs the 3.25% Fed funds rate today (following the .75% hike from yesterday). 

Tyler covered the Fed’s forward signaling on his podcast this week, along with the reminder that the inflationary problems we’re facing today are entirely of the Fed’s own creation. If we had an honest media in this country the questions would be so direct and laser-targeted that J Powell wouldn’t have the courage to stand in front of the reporters and try and answer them. #EndTheFed

A stark economic slowdown is nearing, with millions of laid off Americans, and as we listened to Powell it was clear that this is exactly what Powell and his team of “lockstep” Fed members are salivating for. This was the talk of a psychotic person. Especially when we know that a 1% rise in unemployment is 10 x worse than a 1% rise in inflation. And again, there are essentially no dissenting voices among mainstream economists. As my mentor Ted Parsons (RIP Ted) taught me some 35 years ago, “when all of the economists agree on something, don’t walk…but run in the other direction. Aggressively take the other side of that bet.”.

And that’s just what we will be doing here at the VRA. The Fed has made 4 major policy mistakes in the last 6–7 years…this will be number 5. What does the backend of this latest mistake look like? Well, the Fed likes to break stuff. At this point I would not be surprised to see a retest of the 6/17 lows (roughly 4% lower from here). That should get us to “extreme oversold on steroids” on the VRA Investing System, just as we head into the last trading days left in Q3 and in the month of September, routinely the worst month of the year (especially the 2nd half of the month).

Soon the markets will begin preparing for rather enormous fund flows back into equites (new month/quarter) along with the fact that the 4th quarter is the most bullish of the year…even more the case in midterm Q4’s. And as we’ve reminded often in these pages, we’re also approaching the best 12 month period for investors, period (the 12 months following midterm elections).

Real fear is building…and that’s exactly what we want to see (as contrarians). We learned last night that the AAII investor Sentiment Survey percentage of bears just broke 60% for only the 5th time in history. The average return a year later for the S&P 500 has been more than 33%.

VRA Bottom Line: the Fed is not going to melt the markets down into the midterms. In fact, I continue to expect just the opposite. We will be aggressive buyers here soon.

Finally for today, a must-read piece today from Edward Snowden. The facts contained herein will make anyone who considers themselves a decent person, sick to your stomach.

 “America’s Open Wound. The CIA is Not Your Friend”. 

https://edwardsnowden.substack.com/p/americas-open-wound?utm_medium=email

Until next time, thanks again for reading….

Kip

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